Global Economy

Import duty on TV component to make local industry uncompetitive, expensive: CEAMA

New Delhi: Resumption of customs duty on the import on open cell for TVs from next month may make the domestic manufacturing uncompetitive and expensive, industry body CEAMA warned on Sunday. It will also put additional pressure on TV manufactures, which are already under stress after the disruption in the market post COVID-19, CEAMA said in a statement.

The statement came against the background of the reimposition of 5 per cent customs duty on the import of open-cell for TVs from October 1.

“This may make domestic manufacturing uncompetitive and expensive. Open-cell panels form nearly 65 per cent of the total production cost of television and the imposition of duty may have an impact on the overall pricing of TVs,” said CEAMA President Kamal Nandi.

TV is one of the larger segments under the entire domain of Appliance and Consumer Electronics accounting to a volume of almost 17 million with an estimated sale value of almost Rs 25,000 crore, it added.

“The TV industry is also one of the biggest employers with estimated employment of over 40,000 people directly and many more indirectly through the ancillary units,” said Consumer Electronics and Appliances Manufacturers Association (CEAMA).

While another TV maker Videotex, which has Daiwa and Shinco TV brands in India said that this is going to further increase the prices.

“Open cell manufacturing facility requires a huge investment in India and until that happens the government should allow the open cell to be imported at Zero duty. This duty is going to increase the TV prices further for the end customer which have already increased due to a hike in open-cell prices from supplier end,” said Videotex International Group Director Arjun Bajaaj.

The government had last year exempted customs duty on open cell, a key component of TV, for a year till September 30 as the domestic industry had sought time to build capacity.

With the exemption coming to an end, 5 per cent duty would be reimposed on open-cell from October 1, a finance ministry source said.

The source further said that this move is elemental to the Phased Manufacturing Plan (PMP) of television and its components to bring the industry out of mere television assembling while being totally dependent on imports for all its parts.


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